Financial literacy and rationality of youth in Slovakia

Abstract

In recent years, the importance of issue of financial literacy of young people increases. Given view is evidenced by numerous research studies which aim to detect the factors that determine the financial literacy level of subjects of studies. The aim of presented study is to reveal relationship between financial literacy and rationality of students in Slovakia. We use questionnaire to detect rationality and financial literacy level of subjects. In regression we also control for control for age, gender, type of school and number of family members to detect possible variables that can influence financial literacy. Our findings suggest that males' financial literacy is higher than females' one. We also document that adolescents are less financially literate than 22+ years old students. Interesting is finding about relationship between financial literacy and number of family members. Students from families with more members are more financially literate than students from less membered families. The positive relationship between rationality and financial literacy is proven, despite being weaker than we expected.